DOCSLIB.ORG

Table of Contents

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Table of Contents THE SAUDI BRITISH BANK Table of Contents 7 Board of Directors 9 Financial Highlights 10 Chairman’s Statement 12 Directors’ Report 28 Auditors’ Report 3030 Consolidated Balance Sheet 31 Consolidated Statement of Income 32 Consolidated Statement of Changes in Shareholders’ Equity 33 Consolidated Statement of Cash Flows 34 Notes to the Financial Statements 75 Basel II – Pillar 3 Annual Disclosures 88 Pillar 3 Annual Disclosures – Tables 102 Addresses and Contact Numbers This report is issued by SABB (The Saudi British Bank) To receive a copy of this report, please contact: Corporate Communications SABB Head Office: P.O. Box 9084 Riyadh 11413 Kingdom of Saudi Arabia Tel: +966 (1) 276 4779 Fax: +966 (1) 276 4809 Email: [email protected] or visit our website at: www.sabb.com Custodian of The Two Holy Mosques King Abdullah Bin Abdulaziz Al Saud His Royal Highness Prince Sultan Bin Abdulaziz Al Saud The Crown Prince, Deputy Premier, Minister of Defence and Aviation and Inspector General THE SAUDI BRITISH BANK Board of Directors Chairman Abdullah Mohammad Al Hugail Managing Director Khaled Suliman Olayan Fouad Abdulwahab Bahrawi John Edward Coverdale Khalid Abdullah Al Molhem DavidYoussef Howard Assad Hodgkinson Nasr Richard W L Groves Sulaiman Abdulkader Ahmed Sulaiman Banaja Mukhtar Malik Hussain Al Muhaidib 7 8 THE SAUDI BRITISH BANK Financial Highlights Year Saudi Riyal (millions) 2008 2007 2006 2005 2004 Customer Deposits 92,678 71,848 59,258 48,534 44,666 Shareholders’ Equity 11,634 10,425 9,405 7,493 5,917 Investments, net 29,604 14,859 21,702 16,373 14,676 Loans and Advances, net 80,237 62,001 42,450 40,847 31,627 Total Assets 131,661 98,213 77,189 65,928 57,938 Net Income 2,920 2,607 3,040 2,504 1,646 Gross Dividend 660 1,500 1,500 813 990 Net income 3500 3000 3,040 2500 2,920 2,607 2,504 2000 1500 1,646 1000 Saudi Riyal (millions) Riyal Saudi 500 0 2008 2007 2006 2005 2004 Year 9 THE SAUDI BRITISH BANK Chairman’s Statement On behalf of the Board of Directors I am pleased to present the Annual Report of SABB for the financial year ending 31 December 2008. Saudi Arabia’s economic performance in 2008 and budget for 2009 were the highest recorded. Over the past few years the strong growth witnessed in the Kingdom’s economy has offered wide ranging opportunities. However, after a prolonged rise, oil prices peaked over the summer of 2008 and fell back significantly towards the end of the year. The Saudi economy has not been immune to the international economic slowdown; but despite this and increasing inflation, the government has continued a positive programme of development. Lower demand and output will no doubt present a year of challenges ahead, but SABB is well placed to take advantage of opportunities and face these challenges with confidence. In 2008, SABB has pursued its growth of innovative product development and quality service delivery and will continue to do so in the year ahead, reinforcing its commitment to offering the exceptional combination of local vision, with international expertise. Net profits for the year amounted to SAR 2,920 million (USD 779 million), with a Return on Average Equity (RoAE) of 26%. The Bank’s continued efforts to strengthen its core businesses, as well as introduce new products and services, resulted in the achievement of balanced growth - demonstrated by a significant rise in deposits, loans, advances and total assets, in addition to a substantial increase in our customer base. The gross dividend for the year is SAR 660 million (2007: SAR 1,500 million) and was paid as an interim dividend to shareholders on 30 July 2008 (2007: SAR 609.4 million). The Bank’s board has decided not to recommend a final dividend for 2008 (2007: SAR 890.6 million) and instead will recommend a 1 for 4 bonus issue to be ratified at an Extraordinary General Meeting to be held in the first half of 2009. In 2008 SABB again fulfilled its pledge to provide customers with a market leading service by opening a further seven new branches, four Ladies sections, two new Investment Centres, and four Premier Centres for higher net worth customers. The Bank now has 68 branches and a further 14 dedicated ladies’ sections, with more scheduled to open in 2009 in major cities and regions across the country. For those wishing to conduct their business without having to visit a branch; the Bank now has over 450 ATMs at branches and in various off-site locations around the Kingdom, whilst also providing remote services on the Internet (SABBNET) and over the telephone (SABB Direct). Corporate and Commercial Banking has successfully retained a leading role in this very demanding sector. A major feature of 2008 has been the increased use of HSBC Group’s Global Links Referral System, which has greatly enhanced the generation of business internationally. The Small and Medium Enterprise segment and Business Banking were combined into a single unit during the year, quickly attaining a higher level of business while reducing costs and enhancing service delivery. In addition, the Bank has succeeded in maintaining its status as the leading provider of Personal Banking services in the Kingdom, including those offered under the Shariah compliant Amanah brand, and Private Banking also achieved strong growth in its activities during the year and won Euromoney’s “Best Private Bank in Saudi Arabia” award. SABB’s diversification into investment banking has seen continued success as HSBC Saudi Arabia Limited, in which SABB has a 40% interest, has maintained its leading advantage in what has become an increasingly competitive environment. SABB Takaful, the publicly-quoted Shariah-compliant insurance company in which SABB has a 32.5% interest, has now completed 18 months of trading, establishing a strong presence in the marketplace and winning the Best Takaful Provider in the Euromoney Islamic Finance Awards 2009. SABB Securities Services Limited, a wholly-owned subsidiary that provides brokerage and other securities services through the SABB branch network, has again had a good year and has succeeded in retaining its second place ranking amongst its brokerage competitors in the Kingdom, whilst being the acclaimed leader in securities custody. As in previous years, SABB made a number of humanitarian gestures in 2008. Through Corporate Social Responsibility initiatives focusing on the country’s enduring prospects, SABB redoubled its efforts on environmental matters, establishing an Environmental Management role within the Bank. 10 Looking ahead, the recent economic downturn has been global in reach, but the strongest are gaining an advantage and SABB maintains the sound position needed to derive maximum benefit from the many opportunities in Saudi Arabia. Whilst the recessionary global economy might adversely impact its immediate future, the long term prospects of the Kingdom remain positive, to the ultimate benefit of SABB and the wider Saudi banking community. This leaves me, on behalf of the Board of Directors, with the pleasant task of expressing sincere thanks to all shareholders for their loyalty; my deep appreciation to every member of the Bank’s staff, whose consistent and committed efforts have ensured continued success; and to our customers for their on-going confidence and support. I would also like to express my gratitude to the Saudi government, especially to the Ministries of Finance, Commerce & Industry and the Saudi Arabian Monetary Agency, as well as to the Capital Market Authority, for their continued guidance and help to the Saudi Arabian banking and financial community. As a leading member of that community, SABB reiterates its commitment to the growth and development of Saudi Arabia under the leadership of the Custodian of the Two Holy Mosques and the Crown Prince. Chairman 11 THE SAUDI BRITISH BANK Directors’ Report The Board of Directors is pleased to submit to shareholders the Annual Report of SABB, for the financial year ending 31 December 2008 Introduction SABB was established as The Saudi British Bank by Royal Decree No. M/4 Dated 12 Safar 1398(H) (21 January 1978) and is an associate company of the HSBC Group. Its main objective is to provide a range of banking services to both the retail and corporate sectors. These include depository and lending services, import and export services, loans to corporate customers, investment solutions and financial advisory services to its personal customers. The Bank has 100% (2007 : 100%) ownership interest in a subsidiary, SABB Securities Limited, a Saudi Limited Liability Company, authorised and regulated by the Capital Market Authority - licence number 07071-05 dated 2/7/2007G (17/6/1427H) and registered in the Kingdom of Saudi Arabia under commercial registration No. 1010235982 dated 8 Rajab 1428 H (22 July 2007). The Bank has 98% direct and 2% indirect ownership interest in its subsidiary (the indirect ownership is held via a Limited Liability Company registered in the Kingdom of Saudi Arabia). Activities of subsidiary are to engage in business of custody and dealing as an agent excluding underwriting. The Bank has no subsidiaries outside the Kingdom of Saudi Arabia. Five-year financial highlights Year Saudi Riyal (millions) 2008 2007 2006 2005 2004 Customer Deposits 92,678 71,848 59,258 48,534 44,666 Shareholders’ Equity 11,634 10,425 9,405 7,493 5,917 Investments, net 29,604 14,859 21,702 16,373 14,676 Loans and Advances, net 80,237 62,001 42,450 40,847 31,627 Total Assets 131,661 98,213 77,189 65,928 57,938 Net Income 2,920 2,607 3,040 2,504 1,646 Gross Dividend 660 1,500 1,500 813 990 Geographical Analysis of income: SABB generates most of its income from its activities in the Kingdom of Saudi Arabia Year 2008 2007 Central 2,911,706 2,520,913 Western 1,000,448 932,361 Eastern 999,374 920,678 Business Segments; The Bank is organised into the following main business segments: Retail Banking – which caters mainly to the banking requirements of personal and private banking customers.
Load more

Recommended publications
  • HSBC Case History
    United States Senate PERMANENT SUBCOMMITTEE ON INVESTIGATIONS Committee on Homeland Security and Governmental Affairs Carl Levin, Chairman Tom Coburn, Ranking Minority Member U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History MAJORITY AND MINORITY STAFF REPORT PERMANENT SUBCOMMITTEE ON INVESTIGATIONS UNITED STATES SENATE RELEASED IN CONJUNCTION WITH THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS JULY 17, 2012 HEARING SENATOR CARL LEVIN Chairman SENATOR TOM COBURN, M.D. Ranking Minority Member PERMANENT SUBCOMMITTEE ON INVESTIGATIONS ELISE J. BEAN Staff Director and Chief Counsel ROBERT L. ROACH Counsel and Chief Investigator LAURA E. STUBER Senior Counsel ALLISON ABRAMS Detailee ERIC WALKER Detailee KRISTIN GWIN Congressional Fellow BRIAN EGGER Detailee CHRISTOPHER J. BARKLEY Staff Director to the Minority KEITH B. ASHDOWN Chief Investigator to the Minority JUSTIN J. ROOD Senior Investigator to the Minority JAMIE BENCE MICHAEL WOLF Law Clerk Law Clerk BILL GAERTNER ARIELLE WORONOFF Law Clerk Law Clerk CURTIS KOWALK TAMIR HADDAD Law Clerk Intern KATIE MARTIN-BROWNE SOFIA KNUTSSON Law Clerk Intern WELLESLEY BAUN NOELIA ORTIZ Law Clerk Intern LAUREN ROBERTS JASWANT SINGH Law Clerk Intern MARY D. ROBERTSON Chief Clerk 7/16/12 Permanent Subcommittee on Investigations 199 Russell Senate Office Building – Washington, D.C. 20510 Majority: 202/224-9505 – Minority: 202/224-3721 Web Address: http://www.hsgac.senate.gov/subcommittees/investigations U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History TABLE OF CONTENTS I. EXECUTIVE SUMMARY ................................................ 1 A. Findings. ......................................................... 10 (1) Longstanding Severe AML Deficiencies. 10 (2) Taking on High Risk Affiliates. ................................... 10 (3) Circumventing OFAC Prohibitions. 10 (4) Disregarding Terrorist Links.
    [Show full text]
  • 3Q20 Earnings Release
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. 27 October 2020 (Hong Kong Stock Code: 5) HSBC Holdings plc 3Q20 EARNINGS RELEASE The attached announcement is being released to all the stock exchanges on which HSBC Holdings plc is listed. For and on behalf of HSBC Holdings plc Aileen Taylor Group Company Secretary and Chief Governance Officer The Board of Directors of HSBC Holdings plc as at the date of this announcement comprises: Mark Tucker*, Noel Quinn, Laura Cha†, Henri de Castries†, James Anthony Forese†, Steven Guggenheimer†, Irene Lee†, José Antonio Meade Kuribreña†, Heidi Miller†, Eileen K Murray†, David Nish†, Ewen Stevenson, Jackson Tai† and Pauline van der Meer Mohr†. * Non-executive Group Chairman † Independent non-executive Director HSBC Holdings plc Registered Office and Group Head Office: 8 Canada Square, London E14 5HQ, United Kingdom Web: www.hsbc.com Incorporated in England with limited liability. Registered in England: number 617987 27 OCTOBER 2020 HSBC HOLDINGS PLC 3Q20 EARNINGS RELEASE Noel Quinn, Group Chief Executive, said: “These were promising results against a backdrop of the continuing impacts of Covid-19 on the global economy. I'm pleased with the significantly lower credit losses in the quarter, and we are moving at pace to adapt our business model to a protracted low interest rate environment.
    [Show full text]
  • Strategic Report 2019 Connecting Customers to Opportunities
    HSBC Holdings plc Strategic Report 2019 Connecting customers to opportunities HSBC aims to be where the growth is, enabling businesses to thrive and economies to prosper, and ultimately helping people to fulfil their hopes and realise their ambitions. We aim to deliver long-term value for our shareholders through... ...our extensive ...our access to ...and our balance sheet international network... high-growth markets... strength. We are a leading international Our global footprint and market- We continue to maintain a bank, serving more than leading transaction banking strong capital, funding and 40 million personal, wealth franchise provide extensive liquidity position with a and corporate customers. access to faster-growing diversified business model. markets, particularly in Asia and the Middle East. Reported revenue by global business RBWM 41% CMB 27% GB&M 27% GPB 3% Corporate Centre 2% Total assets Common equity tier 1 ratio Reported revenue by region $2.7tn 14.7% (2018: $2.6tn) (2018: 14.0%) Asia 49% Europe 29% North America 11% Latin America 5% Middle East and North Africa 6% HSBC Holdings plc Strategic Report 2019 Contents Overview 2 Highlights 4 HSBC at a glance 6 Group Chairman’s statement 8 Group Chief Executive’s review Strategy 10 Global trends and strategic advantages 12 Delivering our strategy How we do business 14 Our approach 15 Our ESG metrics and targets 16 Customers This Strategic Report was approved by the Board 18 Employees on 18 February 2020. 20 Supporting sustainable growth 22 Task Force on Climate-related Financial Disclosures (‘TCFD’) 24 Responsible business culture Mark E Tucker Group Chairman Financial overview 26 Delivery against our June 2018 financial targets/2020 business update A reminder and new Group financial targets The currency we report in is US dollars.
    [Show full text]
  • Saudi Arabia Banking Pulse for Q1 2021
    Saudi Arabia Banking Pulse Quarter 1, 2021 FOREWORD Alvarez & Marsal Middle East Limited (A&M) is delighted to publish the Q1’21 edition of the Kingdom of Saudi Arabia (KSA) Banking Pulse (“The Pulse”). In this quarterly series, we share results from our research examining the top ten largest listed KSA banks by assets, and highlight key performance indicators of the KSA banking industry. The Pulse aims to help banking executives and board members stay current on industry trends. Following the completion of NCB’s and SAMBA’s merger we have changed our universe to include The Saudi National Bank (the merged entity, SNB) and Bank Aljazira (BJAZ) instead of NCB and SAMBA, as the Pulse tracks the performance of the top ten banks by asset size. Hence, for consistency of comparison, all historical data has been adjusted to include SNB and BJAZ instead of NCB and SAMBA. The Q1’21 results of the new entity apparently includes financials of NCB, as a standalone entity, as the merger came into effect in April’21. SAMBA’s and merged entity’s pro- forma financials are not available for Q1’21. Despite economic challenges, aggregate net income of top ten KSA banks increased substantially by 34.1% QoQ in Q1’21. The increase in profitability was largely on account of decrease in impairments (-49.7% QoQ). Lending growth more than doubled to 5.0% QoQ. NPL/net loan ratio remained stable at 2.0%. With a coverage ratio of ~150%, the Saudi banks are well covered for any potential asset quality risks.
    [Show full text]
  • SABB 1 September 2020
    September 01, 2020 SAUDI BRITISH BANK Event Update Huge Goodwill Impairment Dents 2Q Income Statement At the end of 2Q 2020, SABB completed its first full financial year after the merger with Alawwal Bank, which closed on 16th June 2019 and resulted in SABB becoming the third largest bank in the Kingdom. The first half of 2020 has been challenging from an economic standpoint as precautionary measures for COVID-19 resulted in temporary shutdown of many economic activities for weeks while international oil prices also plummeted. At the same time, lower interest rates have hurt the income for banks. The merger with Alawwal Bank in an all-share deal closed in June 2019 in the middle of the inclusion of the Tadawul in the MSCI EM Index, which resulted in higher share prices for most of the stocks in the market, including SABB. Thus, the merger in June 2019 resulted in SABB booking a Goodwill of SAR 16.2 billion, which was beyond what management was comfortable with. This matter has been put to rest now with an impairment charge. While the Goodwill impairment charge is a one-off accounting charge on the income statement and does not have any business implications, it is likely to result in SABB positing a net loss for the full year 2020. We have a Neutral rating on SABB with a SAR 24.00 target price. Goodwill inflated by higher share price During the merger period, the inclusion of Saudi Arabia into the MSCI Emerging Markets index was ongoing, with SABB one of the stocks to be included in the MSCI EM Index.
    [Show full text]
  • HSBC City Report: Riyadh the Essence of Past, Present, and Future
    HSBC City Report: Riyadh The essence of past, present, and future 1 2 HSBC City Report: Riyadh Contents Riyadh’s rapid growth path p.4-8 Key development issues for Riyadh p.9-10 Future plans and ambitions p.11-13 COVID-19 and the next cycle of Riyadh p.14-16 HSBC a key partner in the sustainable evolution of Riyadh’s next chapter p.17-23 3 The Next Chapter of Riyadh 1. Riyadh’s rapid growth path As the capital city of the fast growing US$ 800 billion Saudi economy, the largest in the Middle East, North Africa and Turkey (MENAT) region, 1 Riyadh has evolved in the last 50 years into one of the region’s most important economic, governmental, and cultural centres. The city has benefited from several successive cycles of local and foreign direct investment, urban planning expertise, infrastructure investment and inward migration of workers. Today it is a key node in the Middle East system of cities. Figure 1: Riyadh’s population growth; Source: UN World Urbanisation Prospects 2018 Since the 1970s Riyadh has seen its population increase by more than 8% per year. Its population has almost doubled since 2000, and is still expected to grow by more than 25% up to 2035, making it one of the world’s fastest growing cities and the largest agglomeration in the Gulf region. 2 In line with population growth, Riyadh’s spatial footprint grew from 64km2 in 1970 to more than 1,500km2 in 2020. Compared to other fast-growing cities, Riyadh’s housing supply has kept pace with the rapid population growth, and demands on public services and infrastructure have continued to intensify.
    [Show full text]
  • HSBC Saudi Arabia Directors' Report 31 December 2019
    HSBC Saudi Arabia Directors’ Report 31 December 2019 1 2 HSBC SAUDI ARABIA Table of Contents 1. Principal activities 4 Business Overview 4 Global Banking and Markets (GBM) 4 Retail Banking and Wealth Management (RBWM) 4-7 2. Strategic Focus 8 Strategic Highlights 8-9 3. People 10 4. Corporate Social Responsbility 10 5. Financial results and business segment performance highlights 11 Key financial highlights 11-13 6. Risk Overview and Risk Management 14-22 7. Legal Entity Structure 23-24 8. Corporate Governance 24 Corporate governance principles 24 Directors of the Board 24 Profiles of Directors 2-26 Board meetings 27 Board committees 28 Audit committee 28 Nomination and remuneration committee 29 Executive committee 30 Board Risk Committee 31 Dividends 32 Accounting standards 32 9. Statutory payments 32 10. Remuneration Report 33 11. Board of directors’ assurance 33 12. Internal controls 33 13. Penalties 34 14. HSBC SA general meetings 35 15. Appointment of external auditors 35 16. Board of directors’ approval 35 3 HSBC SAUDI ARABIA Directors’ Report The Board of Directors (the “Board”) is pleased to submit to shareholders the Annual Report of HSBC Saudi Arabia (“HSBC SA”) for the financial year ended 31st December 2019. 1. Principal activities HSBC Saudi Arabia (“the Company”) is a Saudi closed joint stock company registered in the Kingdom of Saudi Arabia under Commercial Registration No. 1010221555 and regulated by the Capital Market Authority, pursuant to Capital Market Authority Licence No. 05008-37, whose principal place of business in the Kingdom of Saudi Arabia is at HSBC Building, 7267 Olaya- Al Morooj, Riyadh 12283-2255 Kingdom of Saudi Arabia.
    [Show full text]
  • HSBC Amanah Saudi Freestyle Equity Fund
    HSBC Saudi Equity Trading Fund Information Memorandum Issued by HSBC Saudi Arabia Limited in accordance with the Investment Fund Regulations of the Capital Market Authority of the Kingdom of Saudi Arabia 3 HSBC Saudi Arabia Limited HSBC Saudi Equity Trading Fund Important information about the Fund HSBC Saudi Arabia Limited, a Joint Stock Limited Liability Company duly incorporated according to the laws and • regulations of the Kingdom of Saudi Arabia, its Commercial Registration no. is 1010221555 issued by the Ministry of Commerce and Industry, Kingdom of Saudi Arabia. The Fund Manager is an Authorised Person, under the CMA – Authorised Person Regulations, with licence no. 05008-37 dated 5 January 2006. HSBC Saudi Arabia Limited is offering to investors the HSBC Saudi Equity Trading Fund, an open-ended Fund The Fund is managed by the Manager in accordance with Investment Funds Regulations issued by the Capital Market • Authority of the Kingdom of Saudi Arabia The Fund is an open-ended Investment Fund with the aim to achieve, over the medium to long-term, capital growth • by investing in a diversified portfolio of equities of companies listed on the Saudi Stock Market excluding stocks of conventional financial institutions, and are components of the of HSBC Saudi Equity Non-Financial Index. The Fund Manager may choose to invest excess cash of the Fund in short-term Money Market Instruments with the intention of enhancing the return of the Fund. The Fund is an income accumulation Fund whereby its income will be reinvested and not distributed to the Unit Holders. The reinvestment of the Fund’s income will be reflected in the value and price of the Units Subscribing to the Units of the Fund are subject to all disclosures highlighted in the attached Terms & Conditions • The price of Units of the Fund is subject to market fluctuations of the Saudi Equity Market and the companies the • Fund is invested in.
    [Show full text]
  • Participant List
    Participant List 10/20/2019 8:45:44 AM Category First Name Last Name Position Organization Nationality CSO Jillian Abballe UN Advocacy Officer and Anglican Communion United States Head of Office Ramil Abbasov Chariman of the Managing Spektr Socio-Economic Azerbaijan Board Researches and Development Public Union Babak Abbaszadeh President and Chief Toronto Centre for Global Canada Executive Officer Leadership in Financial Supervision Amr Abdallah Director, Gulf Programs Educaiton for Employment - United States EFE HAGAR ABDELRAHM African affairs & SDGs Unit Maat for Peace, Development Egypt AN Manager and Human Rights Abukar Abdi CEO Juba Foundation Kenya Nabil Abdo MENA Senior Policy Oxfam International Lebanon Advisor Mala Abdulaziz Executive director Swift Relief Foundation Nigeria Maryati Abdullah Director/National Publish What You Pay Indonesia Coordinator Indonesia Yussuf Abdullahi Regional Team Lead Pact Kenya Abdulahi Abdulraheem Executive Director Initiative for Sound Education Nigeria Relationship & Health Muttaqa Abdulra'uf Research Fellow International Trade Union Nigeria Confederation (ITUC) Kehinde Abdulsalam Interfaith Minister Strength in Diversity Nigeria Development Centre, Nigeria Kassim Abdulsalam Zonal Coordinator/Field Strength in Diversity Nigeria Executive Development Centre, Nigeria and Farmers Advocacy and Support Initiative in Nig Shahlo Abdunabizoda Director Jahon Tajikistan Shontaye Abegaz Executive Director International Insitute for Human United States Security Subhashini Abeysinghe Research Director Verite
    [Show full text]
  • HSBC Holdings Plc 2Q19 Results Presentation to Investors and Analysts Key Messages
    HSBC Holdings plc 2Q19 Results Presentation to Investors and Analysts Key messages 1 2Q19 profit attributable to ordinary shareholders $4.4bn vs. $4.1bn 2Q18 2 2Q19 adjusted PBT of $6.2bn up 4% vs. 2Q18. 1H19 adjusted PBT of $12.5bn up 7% vs. 1H18 3 1H19 positive adjusted jaws of 4.5%, driven by growth in revenue 8.0% and costs up (3.5)% 1H19 annualised RoTE of 11.2%, up 150bps vs. 1H18, including 120bps from SABB dilution 4 gain CET1 ratio 14.3% stable vs.1Q19 5 We intend to initiate a share buy-back of up to $1bn, which is expected to commence shortly We continue to target a RoTE above 11% in 2020 6 The changed interest rate and geopolitical outlook could impact our major markets. We are managing operating expenses and investment spending in line with increased risks to revenue 1 Progress on our strategic priorities Strategic priorities Targeted 2020 outcomes 1H19 performance highlights (vs. 1H18 unless noted) Asia adjusted revenue of $15.5bn (+9%); Wealth in Asia revenue of Accelerate growth from Asia High single digit revenue growth p.a.; 1 $3.1bn, up 7% (excl. market impacts in Insurance Manufacturing, . Build on strength in Hong Kong Market share gains in 8 scale . Invest in PRD, ASEAN, & Wealth in Asia (incl. markets1; No. 1 international bank for down 1%) Insurance and Asset Management) BRI 5 out of 8 scale markets gained market share in loans and/or Be the lead bank to support drivers of global deposits2 investment: China-led Belt & Road Initiative and the $100bn cumulative sustainable $36.7bn cumulative3 (+$8.2bn vs.
    [Show full text]
  • Strategy Update
    Strategy Update London 23 November 2007 Stephen Green, Group Chairman Michael Geoghegan, Group Chief Executive HSBC Holdings plc HSBC Holdings plc Strategy update Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forward-looking statements represent the Group’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Additional detailed information concerning important factors that could cause actual results to differ materially is available in our Annual Report. Strategy update Agenda Introduction………………………………………......….…...…………….Stephen Green Shaping the business ..…..……..………………………...….....…….…...Stephen Green Joining up .....…....…………………………......….…...…………….Michael Geoghegan Summary……......................................................................................Stephen Green HSBC Group We are the world’s local bank Largest international emerging markets bank Widespread international network Uniquely international customer base Unquestioned financial strength 1.01 Building on HSBC’s heritage We have consistently created strong value Market capitalisation (US$bn) Growth from organic investments and acquisitions CAGR 23% 31Dec91 – 30Jun07 US$bn 250 205 Tier 1 capital 31Dec91 200 9 Retained profits1
    [Show full text]
  • Hold HSBC Holdings
    Deutsche Bank Markets Research Rating Company Date 16 February 2017 Hold HSBC Holdings Plc Forecast Change Asia Hong Kong Reuters Bloomberg Exchange Ticker Price at 15 Feb 2017 (HKD) 67.70 Banking / Finance 0005.HK 5 HK HSI 0005 Price target - 12mth (HKD) 64.00 Banks ADR Ticker ISIN 52-week range (HKD) 67.70 - 45.80 HBC US4042804066 HANG SENG INDEX 23,995 Rate re-rating Stephen Andrews, CFA Research Analyst (+852 ) - 2203 6191 Look East not West for rate sensitivity [email protected] As discussed in our 'Capital Map' report last year, the bulk of HSBC's returns and shareholder value lies in the Asia franchise. When it comes to rising US$ David Lock interest rates, the majority of sensitivity to higher rates is also in Asia (HK balances are 3x those of the US IHC balance sheet). This note takes a closer Research Analyst look at the key sensitivities of the bank to interest rates, from a top-down, (+44) 20 754-11521 bottom-up and historical perspective. Overall we think that the recent share re- [email protected] rating can be explained largely by expectations that HIBOR moves up steadily by c.150bps over the next 3 years. Our forecasts rise by 5-10%, reflecting Key changes higher NII. Our TP rises to 64HKD, but with limited catalysts we remain Hold. Price target 56.00 to 64.00 ↑ 14.3% Top down and bottom up - Asia is the key driver Net int margin 1.92 to 1.89 ↓ -1.3% HSBC's interim report shows the impact of a 100bps parallel shift in the yield (FYE) curve over a 12 month period as c.US$2.7bn annualised, or around 15% of Net profit 7,299.5 to ↓ -1.9% post-tax earnings.
    [Show full text]